The 1987 study by Bowen, Leamer and Sveikauskas
A) proved that the U.S.'s comparative advantage relied on skilled labor.
B) supported the validity of the Leontief Paradox.
C) supported the validity of the Heckscher-Ohlin model.
D) demonstrated that in fact countries tend to use different technologies.
E) used a two-country and two-product framework.

Question

Quizplus · Accepted Answer

The 1987 study by Bowen, Leamer, and Sveikauskas supported the validity of the Leontief Paradox, which is a finding that contradicts the expectations of the Heckscher-Ohlin model by showing that the U.S. (which was capital-abundant) exported labor-intensive commodities and imported capital-intensive commodities.

The 1987 Study by Bowen, Leamer and Sveikauskas